CHUCK SA has the following production plan for the next 4 weeks. The values shown below reflect the maximum capacity lev
Posted: Wed Mar 30, 2022 3:41 pm
CHUCK SA has the following production plan for the next 4 weeks.
The values shown below reflect the maximum capacity levels of the
company. The planned production is equal to the maximum demand for
each type of product.
A
B
C
D
$/Unit
$/Unit
$/Unit
$/Unit
Sale price
180
210
90
130
Raw material cost
24
56
22
40
Labor cost
66
88
33
22
Variable indirect costs
24
18
24
18
Fixed indirect costs
16
10
8
12
Margin per unit
30
42
13
48
Planned Production
300
125
240
400
Labor cost per unit
6
8
3
2
The Direct Labor Force is organizing a strike for two weeks of
the next 4 weeks. This means that only a total of 2,160 hours will
be available for production, instead of the usual 4,320 hours.
REQUESTED:1. If the strike is carried out, indicate which
product or products should be prioritized and in what order if the
objective is to maximize utility.
Please explain step by step using limitant factor.
The values shown below reflect the maximum capacity levels of the
company. The planned production is equal to the maximum demand for
each type of product.
A
B
C
D
$/Unit
$/Unit
$/Unit
$/Unit
Sale price
180
210
90
130
Raw material cost
24
56
22
40
Labor cost
66
88
33
22
Variable indirect costs
24
18
24
18
Fixed indirect costs
16
10
8
12
Margin per unit
30
42
13
48
Planned Production
300
125
240
400
Labor cost per unit
6
8
3
2
The Direct Labor Force is organizing a strike for two weeks of
the next 4 weeks. This means that only a total of 2,160 hours will
be available for production, instead of the usual 4,320 hours.
REQUESTED:1. If the strike is carried out, indicate which
product or products should be prioritized and in what order if the
objective is to maximize utility.
Please explain step by step using limitant factor.